Employment & Payroll

There are two types of employment contracts – fixed term and non-fixed term. However, the employee is required to sign a written contract in order to be officially employed.

Salaries are paid monthly – 12 payments per year, however some companies will allow 13th payment. Paydays are between the 10th to the 20th of the following month.

Minimum Wage

Minimum wage is 2,190 yuan per month

HR & Labour

An employee’s normal working day should not exceed eight hours, and that the normal working week not exceed 40 hours. Each employee should be guaranteed at least one rest day

Immigration

In order to work in China, Z-type of visa is required. Z-type will allow the employee to enter China and after 30 days to obtain a temporary resident permit which is given for maximum 5 years.

Statutory Payments

Employer contributes 21% of the employee’s wages. Employee contributes 8% of regular wages. The salary ceiling for contributions is 17,817 yuans per month.

Leave Entitlements

Sick days are from 3 to 24 months (employer cannot terminate the contract during this period).

Annual Leave ; If the employee worked between year and less than ten years, they have 5 days of paid leave. If they worked ten years and less than twenty years, they have 10 days of paid leave. Over twenty years, they will get 15 days of paid leave.

Terminations

Employer should provide the employee with a 30 day termination notice or 1 month salary instead of the notice.

Severance payments are paid at one-month salary for each year the employee worked with the company.